By THE BODEN BLOG | November 08, 2010 at 04:29 PM EST |
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When companies make a decision to open, expand or launch new businesses internationally, they will look at many risk factors. One factor which will dictate how they conduct their business will be political risk. Typically defined as the risk of loss when investing in a given country caused by changes in a country's political structure or policies. What we don't see when companies look to open, expand or launch new businesses domestically is their assessment of the political risk involved with the opening, expanding or launching new businesses. The political risk profile should be addressed, especially in the small business community. Those who have paid attention to the last 2 years and those who look at the political climate historically and its' impact on small business are aware that the party in charge certainly impacts small business. January 1, 2011 should begin an interesting time for politics and business, at least over the next 2 years. Small businesses should be paying attention to the politics of business.